BILL PURPOSE: To modify civil forfeitureproceedings to increase the due process andother safeguards for property owners whose property has been seized.

OMB ESTIMATE: P.L. 106-185 shifts the burden of proof from the property owner tothe Federal Government, eliminates the cost bond requirement, and makes numerousother changes to current civil asset forfeiture procedures. OMB estimates that thesechanges will result in fewer seizures of property and thus reduce forfeiture receipts by$115 million per year. Because these receipts are available to be spent without furtheraction, spending will be reduced by the same amount over time. However, there will be anet cost to the government initially because there is a slight lag in the spending of thereceipts. P.L. 106-185 also requires that attorneys be appointed to assist indigentclaimants in certain cases. The Federal Government would be required to pay attorney'sfees for property owners who prevail in court. OMB estimates that this would increasespending by $1 million per year.

(Fiscal years; in millions of dollars)

2000

2001

2002

2003

2004

2005

Outlay effect............

0

-75

-107

-114

-114

-114

Receipt effect..........

0

-115

-115

-115

-115

-115

Net costs.................

0

40

8

1

1

1

CBO ESTIMATE:

(Fiscal years; in millions of dollars)

2000

2001

2002

2003

2004

2005

Outlay effect............

0

-75

-107

-114

-114

-114

Receipt effect...........

0

-115

-115

-115

-115

-115

Net costs.................

0

40

8

1

1

1

EXPLANATION OF DIFFERENCES BETWEEN OMB AND CBO ESTIMATES:

OMB and CBO estimates are the same.

CUMULATIVE EFFECT OF DIRECT SPENDING AND REVENUE LEGISLATIONENACTED TO DATE: